Governor opts out of health insurance exchange creation
Alaska will not create a state-run health insurance exchange under the new federal health care law Gov. Sean Parnell announced July 17. The announcement came after the State of Alaska completed a study on health insurance exchange planning.
“Allocating state dollars and personnel to design and implement an exchange is the most expensive option,” said Parnell. “It doesn’t make sense to spend Alaskans’ dollars to set up an exchange when so much uncertainty exists about how to implement it and how to gain federal approval. Federally mandated programs should be paid for by federal dollars.”
A health insurance exchange is a set of standardized and state-regulated health care plans from which individuals can buy health insurance that is eligible for federal subsidies. Exchanges in each state are mandated by the controversial Patient Protection and Affordable Care Act to be in place by 2014. In states that opt out of running an exchange, the federal government will create one for use by that state’s citizens.